Compound Interest Calculator

Compound Interest Calculator is an online tool that can assist you to calculate Monthly, Yearly, Half-Yearly and Quarterly Compound Interest Calculation. Simply it can provide the answers for How much interest a lender will earn or How much interest a borrower has to pay on the principal for specified period of time

Compound Interest is also similar to simple interest but the interest earned will be added to the principal after a certain unit of time, from that moment on, the interest will be paid both on the principal and on the interest that has been added to it. We can say it simply in other words that the interest earns itself interest. The compounding period and the interest rate are the major components of compound interest calculation. The certain period after which an interest earned during that period added to the principal is called as Compounding Period. Interest Rate is the rate on which the money is borrowed or saved. These are all the formulas which are used to calculate the compound interest on different compound periods

When the interest is compounded annualy then the formula used to calculate the yearly compound interest is

When the interest is compounded semi-annualy then the formula used to calculate the half-yearly compound interest is

When the interest is compounded quarterly then the formula used to calculate the Quarterly compound interest is

When the interest is compounded monthly then the formula used to calculate the monthly compound interest is

WhereP denotes the Principal amountR denotes the percentage of interestn denotes the time in years or months

In Compound Interest the Principal amount changes after every compounding period such as the amount after the first unit of time becomes the principal for the second unit, the amount after the second unit of time becomes the principal for third time and so on. After that certain period, the difference between the amount and the money borrowed is the Compound Interest. When it comes to online calculation, this Compound Interest Calculator can assist you to determine which interest rate and compounding period will yield the best interest by comparing different deals available in the finance market